Domestic billet prices during Jul’16 moved down by 7% on the backdrop of aggressive selling pressure on the manufacturers amid less purchasing by rolling mill operators. On monthly average basis, prices in Jul’16 plunged down by INR 500-1,200/MT (3-7%) in Raipur, Durgapur, Rourkela and Mumbai.
Steep price corrections was seen in Mumbai by INR 1,200/MT to INR 21,450/MT, followed by Raipur (-1,100) to INR 19,900/MT , Rourkela (-1,000) to INR 19,100/MT and Durgapur (-850) to INR 19,750/MT.
During the month, lowest billet offers was recorded in Durgapur at INR 19,750/MT due to nil export to Bangladesh. Bangladesh is the most active buyer of billet from Durgapur. The government of Bangladesh in Jun’16 had imposed duty of 20% on billet imports.
Following price correction in billet, finished steel (rebar) prices also slumped by around INR 1,000/MT across all major markets.
Billet monthly average prices since Jan’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M |
| Jan’16 | 21,100 | + 620 | 21,250 | + 300 | 20,550 | + 700 | 22,900 | + 150 |
| Feb’16 | 21,500 | + 400 | 21,950 | + 700 | 20,750 | + 200 | 23,850 | + 950 |
| Mar’16 | 22,300 | + 800 | 22,650 | + 700 | 21,500 | + 750 | 24,450 | + 600 |
| Apr’16 | 22,650 | + 350 | 22,550 | – 100 | 21,750 | + 250 | 24,450 | 0 |
| May’16 | 21,750 | – 900 | 21,550 | – 1,000 | 20,850 | – 900 | 23,250 | – 1,200 |
| Jun’16 | 20,600 | – 1,150 | 21,000 | – 550 | 20,100 | – 750 | 22,650 | – 600 |
| Jul’16 | 19,750 | – 850 | 19,900 | – 1,100 | 19,100 | – 1,000 | 21,450 | – 1,200 |
Basic prices in INR/MT
Source: SteelMint Research
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